Operating a business in Britain that requires importing goods can be stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules may benefit your business as you’re able make sure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.
If you import taxable goods into the UK then you will be charged import vat or customs duties. These duties need to be paid on the value of the products and they are subject to vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is called the ?ad valorem duty? and there https://vatvalidation.com/vat are 6 methods that can be used to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you’ve chosen a particular way of the valuation on the goods that you have imported to the UK.
In case you have imported goods into the UK from a eu country that has also collected vat tax from you prior to goods were dispatched to the UK then you have effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK you’ll be able to make an application for vat reclaim to get the previous amount back into your account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although refund process might take between four to 8 months to materialize, your costs will definitely get lowered. You should employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will give you an incentive to your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and start selling the same under vat invoices then you will need to maintain detailed accounts of the level of vat paid and collected built in. You’ll have to mention these vat amounts in your vat returns that will have to be filed regularly based on the vat scheme that you have chosen. Remember that that any genuine mistake by you while importing goods to the UK should be rectified as quickly as possible as it could be construed as evasion of customs duties and would invoke strict action including penalties from the hmrc department. Your vat agent should have complete knowledge on customs and excise rules as well as eu vat and uk vat rules so that there aren’t any miscalculations while importing goods to the UK.
If you are a vat registered trader in the United Kingdom that must import goods into the UK then you will surely have to pay all applicable customs duties on the very same. However, you may also claim back vat amounts paid in the country of origin on goods and also on services that were utilized in that country. A competent vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid whilst helping smooth entry of imported goods into the UK.